Segment Reporting | Note 14 Segment Reporting We are an integrated agricultural cooperative, providing grain, food, agronomy and energy resources to businesses and consumers on a global basis. We provide a wide variety of products and services, from initial agricultural inputs such as fuels, farm supplies, crop nutrients and crop protection products, to agricultural outputs that include grain and oilseed, processed grain and oilseed, renewable fuels and food products. We define our operating segments in accordance with ASC Topic 280, Segment Reporting , to reflect the manner in which our chief operating decision maker, our Chief Executive Officer, evaluates performance and allocates resources in managing the business. We have aggregated those operating segments into three reportable segments: Energy, Ag and Nitrogen Production. Our Energy segment produces and provides primarily for the wholesale distribution of petroleum products and transportation of those products. Our Ag segment purchases and further processes or resells grain and oilseed originated by our ag retail (formerly referred to as country operations) business, by our member cooperatives and by third parties; serves as a wholesaler and retailer of crop inputs; and produces and markets ethanol. Our Nitrogen Production segment consists of our equity method investment in CF Nitrogen that records earnings and allocated expenses but not revenues. Our supply agreement with CF Nitrogen entitles us to purchase up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Corporate and Other represents our financing and hedging businesses, which primarily consists of a U.S. Commodity Futures Trading Commission-regulated futures commission merchant ("FCM") for commodities hedging and financial services related to crop production. Our nonconsolidated investments in Ventura Foods and Ardent Mills, LLC ("Ardent Mills") are also included in our Corporate and Other category. Corporate administrative expenses and interest are allocated to each reportable segment and Corporate and Other, based on direct use of services, such as information technology and legal, and other factors or considerations relevant to the costs incurred. Many of our business activities are highly seasonal and our operating results vary throughout the year. Our revenues and IBIT generally trend lower during the second fiscal quarter and increase in the third fiscal quarter. For example, in our Ag segment, our ag retail business generally experiences higher volumes and revenues during the fall harvest and spring planting seasons, which generally correspond to our first and third fiscal quarters, respectively. Additionally, our agronomy business generally experiences higher volumes and revenues during the spring planting season. Our global grain and processing operations are subject to fluctuations in volume and revenues based on producer harvests, world grain prices, demand and international trade relationships. Our Energy segment generally experiences higher volumes and revenues in certain operating areas, such as refined products, in the spring, summer and early fall when gasoline and diesel fuel use by agricultural producers is highest and is subject to global supply and demand forces. Other energy products, such as propane, generally experience higher volumes and revenues during the winter heating and fall crop-drying seasons. Our revenues, assets and cash flows can be significantly affected by global market prices for commodities such as petroleum products, natural gas, grain, oilseed, crop nutrients and flour. Changes in market prices for commodities that we purchase without a corresponding change in the selling prices of those products can affect revenues and operating earnings. Commodity prices are affected by a wide range of factors beyond our control, including weather, crop damage due to plant disease or insects, drought, availability and adequacy of supply, availability of reliable rail and river transportation networks, outbreaks of disease, government regulations and policies, global trade disputes, wars and civil unrest, and general political and economic conditions. While our revenues and operating results are derived primarily from businesses and operations that are wholly-owned or subsidiaries and limited liability companies in which we have a controlling interest, a portion of our business operations are conducted through companies in which we hold ownership interests of 50% or less or do not control the operations. We account for these investments primarily using the equity method of accounting, wherein we record our proportionate share of income or loss reported by the entity as equity income from investments, without consolidating the revenues and expenses of the entity in our Consolidated Statements of Operations. In our Ag segment, this includes our 50% interest in TEMCO, LLC ("TEMCO") and our 50% interest in Producer Ag, LLC ("Producer Ag"). In our Nitrogen Production segment, this consists of our approximate 8.4% membership interest (based on product tons) in CF Nitrogen. In Corporate and Other, this principally includes our 50% ownership in Ventura Foods and our 12% ownership in Ardent Mills. See Note 6, Investments , for more information related to our equity method investments. Reconciling amounts represent the elimination of revenues between segments. Such transactions are executed at market prices to more accurately evaluate the profitability of the individual business segments. Segment information for the years ended August 31, 2024, 2023 and 2022, is presented in the tables below. Energy Ag Nitrogen Production Corporate Reconciling Total Year ended August 31, 2024 (Dollars in thousands) Revenues, including intersegment revenues $ 9,339,079 $ 30,432,758 $ — $ 94,113 $ (604,721) $ 39,261,229 Intersegment revenues (572,584) (15,899) — (16,238) 604,721 — Revenues, net of intersegment revenues $ 8,766,495 $ 30,416,859 $ — $ 77,875 $ — $ 39,261,229 Operating earnings (loss) 403,854 241,327 (71,530) 10,707 — 584,358 Interest expense (16,773) 61,982 61,942 22,027 (25,114) 104,064 Other income (11,283) (98,142) (9,176) (44,143) 25,114 (137,630) Equity (income) losses from investments 2,857 (65,190) (275,531) (141,999) — (479,863) Income before income taxes $ 429,053 $ 342,677 $ 151,235 $ 174,822 $ — $ 1,097,787 Capital expenditures $ 204,151 $ 426,291 $ — $ 178,321 $ — $ 808,763 Depreciation and amortization $ 255,795 $ 178,400 $ — $ 47,529 $ — $ 481,724 Total assets as of August 31, 2024 $ 4,262,974 $ 7,279,846 $ 2,544,530 $ 4,627,725 $ — $ 18,715,075 Energy Ag Nitrogen Production Corporate Reconciling Total Year ended August 31, 2023 (Dollars in thousands) Revenues, including intersegment revenues $ 10,761,503 $ 35,456,969 $ — $ 82,107 $ (710,575) $ 45,590,004 Intersegment revenues (664,590) (31,765) — (14,220) 710,575 — Revenues, net of intersegment revenues $ 10,096,913 $ 35,425,204 $ — $ 67,887 $ — $ 45,590,004 Operating earnings (loss) 1,071,492 346,137 (73,828) (301) — 1,343,500 Interest expense 7,672 71,115 60,090 31,487 (32,922) 137,442 Other income (19,456) (88,061) — (37,536) 32,922 (112,131) Equity (income) losses from investments 7,833 (48,725) (394,678) (254,020) — (689,590) Income before income taxes $ 1,075,443 $ 411,808 $ 260,760 $ 259,768 $ — $ 2,007,779 Capital expenditures $ 204,003 $ 308,690 $ — $ 51,829 $ — $ 564,522 Depreciation and amortization $ 254,115 $ 166,982 $ — $ 43,518 $ — $ 464,615 Total assets as of August 31, 2023 $ 4,313,240 $ 7,095,283 $ 2,577,391 $ 4,971,504 $ — $ 18,957,418 Energy Ag Nitrogen Production Corporate Reconciling Total Year ended August 31, 2022 (Dollars in thousands) Revenues, including intersegment revenues $ 10,964,304 $ 37,489,203 $ — $ 45,278 $ (707,119) $ 47,791,666 Intersegment revenues (669,530) (28,992) — (8,597) 707,119 — Revenues, net of intersegment revenues $ 10,294,774 $ 37,460,211 $ — $ 36,681 $ — $ 47,791,666 Operating earnings (loss) 633,832 588,070 (55,600) (37,216) — 1,129,086 Interest expense 6,768 59,118 48,110 5,105 (4,945) 114,156 Other (income) expense (3,474) (46,277) 11,487 9,559 4,945 (23,760) Equity (income) losses from investments 13,987 (82,357) (593,182) (109,775) — (771,327) Income before income taxes $ 616,551 $ 657,586 $ 477,985 $ 57,895 $ — $ 1,810,017 Capital expenditures $ 116,136 $ 203,851 $ — $ 34,457 $ — $ 354,444 Depreciation and amortization $ 250,972 $ 173,488 $ — $ 37,512 $ — $ 461,972 We have international sales, which are predominantly in our Ag segment. The following table presents our sales, based on the geographic location of the subsidiary making the sale, for the years ended August 31, 2024, 2023 and 2022: 2024 2023 2022 (Dollars in thousands) North America (a) $ 36,876,847 $ 43,376,177 $ 45,039,981 South America 515,177 378,021 371,493 Europe, Middle East and Africa (EMEA) 693,454 930,052 1,093,974 Asia Pacific (APAC) 1,175,751 905,754 1,286,218 Total $ 39,261,229 $ 45,590,004 $ 47,791,666 (a) Revenues in North America are substantially all attributed to revenues from the United States. Tangible long-lived assets include our property, plant and equipment, finance lease assets and capitalized major maintenance costs. The following table presents tangible long-lived assets by geographical region based on physical location: 2024 2023 (Dollars in thousands) United States $ 5,330,168 $ 5,088,366 International 70,306 70,384 Total $ 5,400,474 $ 5,158,750 |